Why consider 1031 exchanges in Orlando? 1031 exchanges are acknowledged as being an excellent method to build long term wealth by deferring taxes.
We can meet the rules and regulations set forth in the 1031 exchange programs for purchasing a property in Orlando. We have a growing demand for 1031 exchanges in Orlando as the short term rental market continues to expand.
One of the largest benefits of purchasing a vacation home in Orlando as part of a 1031 exchange, is that you will be investing into one of the strongest rental markets in the world.
Based on the last 5 years our vacation home owners are achieving 40+ weeks rental per year. You will also be allowed to use the property for a maximum of 14 days per year according to 1031 rules.
What is a 1031 exchange?
1031 exchanges are deferred tax investments – often used for real estate investments which offer some form of rental income.
When you sell your property in order to make a 1031 exchange you have 45 days to identify a new property to purchase plus 2 secondary options as fall backs.
Once the initial property is sold the investor has 180 days to close on the new property. They must invest (including closing costs and transaction duties) the same amount as they have received for the sale of their property plus $1 or more.
If you have a little extra cash you can also purchase a property at a higher price. You can even do this by taking out a mortgage loan on top of the cash from the 1031 funds.
Many 1031 exchange investors are unaware that they are allowed to roll monies from their IRA into the 1031 exchange through the application of the 1035 exchange module.
We advise you speak to an experienced CPA as you may be able to reduce your income taxes by formalizing these transactions correctly.
Many investors invest in properties for long term rental, commercial strip malls with long term tenants. What a growing number of 1031 investors are realizing is that the short term rental market in Orlando can offer excellent returns on investment – often exceeding more traditional investments.
Successful 1031 investments
Owners of quality vacation homes which are well furnished, well managed and in good communities will often achieve over 40 weeks of paid occupancy each year. Even after the cost of management, booking fees, licenses and HOA fees, this type of investment property can offer excellent Net returns when compared to better known investment properties.
Disclaimer: You should always speak to a licensed professional when dealing with 1031 exchanges and 1035 exchanges.